How Do You Keep From Getting Scammed on a Rental Property?

[HockeyIlliterate]

I may be needing to find a new apartment to live in.

When I moved up here, we were shown around town and possible apartments by someone with a relocation firm, so they handled all the legwork to set up places to tour and the leasing paperwork.

Now, however, I may need to do all of the property research, touring, and leasing paperwork on my own.

As such, I'm a little concerned about the possibility (however remote it might be) of getting scammed and dealing with someone who isn't really the owner of the property that we are looking at, and forking over $2K to $3K as a "deposit" and never seeing that money again. Call me paranoid if you wish, but I worry about such things.

Accordingly, any advice on how to avoid getting scammed and ensuring that I'm dealing with the actual owner (or owner's representative) of the property in question? And how to make sure that any rental deposit that I hand over is not just going to be pocketed and spent in Vegas or wherever by the non-owner, leaving me without a place to live?

[Canehdianman]

You could always have land titles run a search on the property. It will give you the name of the owner as confirmation.

[troutman]

I suppose you could do title searches (and corporate searches if property owner is a corporation).

[undercoverbrother]

Originally Posted by HockeyIlliterate

I may be needing to find a new apartment to live in.

When I moved up here, we were shown around town and possible apartments by someone with a relocation firm, so they handled all the legwork to set up places to tour and the leasing paperwork.

Now, however, I may need to do all of the property research, touring, and leasing paperwork on my own.

As such, I'm a little concerned about the possibility (however remote it might be) of getting scammed and dealing with someone who isn't really the owner of the property that we are looking at, and forking over $2K to $3K as a "deposit" and never seeing that money again. Call me paranoid if you wish, but I worry about such things.

Accordingly, any advice on how to avoid getting scammed and ensuring that I'm dealing with the actual owner (or owner's representative) of the property in question? And how to make sure that any rental deposit that I hand over is not just going to be pocketed and spent in Vegas or wherever by the non-owner, leaving me without a place to live?

I have not rented for years and years, but is this a common problem?

[Cowperson]

Originally Posted by HockeyIlliterate

I may be needing to find a new apartment to live in.

When I moved up here, we were shown around town and possible apartments by someone with a relocation firm, so they handled all the legwork to set up places to tour and the leasing paperwork.

Now, however, I may need to do all of the property research, touring, and leasing paperwork on my own.

As such, I'm a little concerned about the possibility (however remote it might be) of getting scammed and dealing with someone who isn't really the owner of the property that we are looking at, and forking over $2K to $3K as a "deposit" and never seeing that money again. Call me paranoid if you wish, but I worry about such things.

Accordingly, any advice on how to avoid getting scammed and ensuring that I'm dealing with the actual owner (or owner's representative) of the property in question? And how to make sure that any rental deposit that I hand over is not just going to be pocketed and spent in Vegas or wherever by the non-owner, leaving me without a place to live?

Google the problem and get some helpful tips.

http://www.residence.uottawa.ca/en/och/scam.html

http://apartments.about.com/od/apart...ntal-Scams.htm

That's what the internets are for.

Cowperson

[DuffMan]

what kind of places do you normally rent and where? I've never heard of people getting ripped off like this in Canada.

[HockeyIlliterate]

Originally Posted by undercoverbrother

I have not rented for years and years, but is this a common problem?

I don't know, but I'm an overly cautious and paranoid-type fellow.

Originally Posted by DuffMan

what kind of places do you normally rent and where? I've never heard of people getting ripped off like this in Canada.

Places near downtown, usually in the top 25% price range of available properties. Not necessarily "executive" type furnished apartments, but higher-end type places where nice and newish furnishings and appliances are the norm.

I've rented in various cities in Texas and here in Calgary.

[ranchlandsselling]

For starters the scammers usually meet you outside and say the current tenants won't let you in but want your deposit. If you can't view the property don't give any money.

That's not to say that viewing it will solve all your problems.

[Ace]

Just take some video of the guy, then if anything turns South leave it to CP to find him.

[Shaggin Wagon]

There was an incident in Calgary in the last five years. A renter put ads online and collected deposits from several people. She moved out and the landlord had a bunch of people trying to move into his property when he already lined up a tenant.

This stuff happens all the time in Canada. Even in lake communities.

Recent occurrence in Calgary:
http://oncampus.macleans.ca/educatio...ake-landlords/

Don't get scammed:
http://www.crra.ca/wp-content/upload...Winter2013.pdf

[valo403]

Originally Posted by Shaggin Wagon

There was an incident in Calgary in the last five years. A renter put ads online and collected deposits from several people. She moved out and the landlord had a bunch of people trying to move into his property when he already lined up a tenant.

This stuff happens all the time in Canada. Even in lake communities.

Recent occurrence in Calgary:
http://oncampus.macleans.ca/educatio...ake-landlords/

Don't get scammed:
http://www.crra.ca/wp-content/upload...Winter2013.pdf

That's good hustle right there

[onetwo_threefour]

Well, as a cautionary tale, I am a real estate lawyer, and despite taking what I think to be reasonable precautions I got scammed last year, although not exactly as described in the OP it's pretty close and based on my experience it's pretty damn hard to avoid. Here's my story.

I was building a new house last hear, possession in December, but wanted to sell my old place in the spring market for various reasons, so I was in the market for a six month rental. I got my wife to do the internet legwork, finding properties, making first contact with the landlord etc. It's a tough market finding a six month rental that will accept a large dog and kids, since options were limited and risk was higher. My wife found a place that was acceptable, if a little overpriced and went to look at it. She was happy enough to agree to rent it. Prior to signing a rental agreement or paying any money, I pulled taxes and title to the property to make sure that the guy I was dealing with was the owner. Lo and behold, the property had been transferred a few months earlier and the guy on title was not the guy who had it listed for rent. So I called and emailed the guy and asked him what his authority was for renting the property, to which he replied that he was the rental agent for the Owner. Obviously I wouldn't accept that at face value,so I told him to get me a letter and proof of ID from the owner on title confirming that this guy was authorized to rent out the property on his behalf. Surprisingly, I got short authorization letter signed and a notarized photocopy of the owners driver's license, so I went ahead with the transaction, renting from the numbered company of the agent (for which I also pulled a corporate search in an effort to confirm he was authorized to represent the corporation as well).

So after all this, we rent the property, couldn't get the landlord to fix the partially working fridge or the completely broken dryer, left the place in better condition than we found it two weeks before we were even supposed to be out, and still got stiffed on the deposit. The landlord wrote me bad cheque on a company account and I just spent six months chasing it. Luckily I had an articling student so it didn't really cost me anything other than aggravation, but there are so many different ways you can get screwed it's not even funny. Halfway through chasing my money from the owner he gets a lawyer to call me and plead that he was a victim of this fraudulent bad guy I rented from and wanted to give me half my deposit. I told him to go pound sand since I was out the money and he should have figured it out when I requested a letter form him and copy of his ID.